Kurogane Kosakusho Ltd. (7997) AI Stock Analysis

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Kurogane Kosakusho Ltd.

(TSE/TYO:7997)

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Rating:63Neutral

Price Target:JPY 1,246.00▲(2.72% Upside)

Action:reiterated

Date:11/07/26

The overall score of 63 reflects a company with a very strong balance sheet that is offset by operational challenges. The primary strength is the company's financial foundation, with low debt and healthy equity. The most significant risk is the weak and volatile cash flow generation combined with declining revenues, which raises concerns about the sustainability of recent profitability. Technical trends are supportive, but valuation appears slightly stretched given the financial headwinds.

Positive Factors

Conservative balance sheetCurrently low leverage gives Kurogane greater financial resilience and flexibility than in its stressed 2020–2022 period. A stronger equity base can help the company fund facility projects, absorb demand fluctuations, and avoid excessive reliance on borrowing over the next several quarters.

Negative Factors

Declining revenueContracting revenue indicates weaker demand or lower project volume across the company’s facility-related markets. Continued top-line pressure could reduce operating leverage, limit the benefits of improved gross margin, and make it harder for recent earnings gains to persist through the next several quarters.

Kurogane Kosakusho Ltd. (7997) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.03B
Dividend Yield: 1.65%
Average Volume (3M): 5,028
Price to Earnings (P/E): 21.8
Beta (1Y): 0.22
Revenue Growth: -4.02%
EPS Growth: -69.59%
Country: Japan
Employees: 264
Sector: General
Sector Strength: 55
Industry: Business Equipment & Supplies

Kurogane Kosakusho Ltd. Business Overview & Revenue Model

Company Description

Kurogane Kosakusho Ltd. manufactures and sells furniture for offices, medical and welfare facilities, schools, public facilities, and residential use. The company also provides a building accessory equipment segment that offers air conditioning units...

How the Company Makes Money

Kurogane Kosakusho Ltd. primarily makes money by selling its manufactured furniture and facility-related products to corporate, public-sector, and institutional customers (e.g., offices and schools). Revenue is generated through (1) product sales of...

Kurogane Kosakusho Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a major strength (score 88) with very low debt and growing equity. However, the income statement (score 62) shows declining revenue despite improved margins, and cash flow (score 42) remains weak and volatile. The strong balance sheet provides a solid foundation, but operational cash generation is a concern.

Income Statement

62Positive

Balance Sheet

88Very Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	6.19B	6.34B	7.20B	7.18B	6.92B	8.37B
Gross Profit	1.37B	1.47B	1.55B	1.45B	1.38B	1.68B
EBITDA	260.30M	722.04M	393.97M	1.51B	-337.08M	280.31M
Net Income	96.48M	403.10M	209.38M	1.21B	-566.03M	-5.37M
Balance Sheet
Total Assets	7.85B	8.55B	8.06B	8.20B	8.52B	9.64B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.53B	907.86M	1.32B	658.82M	775.12M
Total Debt	913.96M	961.70M	883.32M	931.73M	2.90B	3.48B
Total Liabilities	3.21B	3.70B	3.48B	3.92B	5.60B	6.25B
Stockholders Equity	4.64B	4.85B	4.58B	4.27B	2.91B	3.37B
Cash Flow
Free Cash Flow	0	29.66M	-710.24M	-445.98M	172.22M	233.90M
Operating Cash Flow	0	76.48M	-248.97M	-428.43M	181.12M	290.34M
Investing Cash Flow	0	208.10M	-81.60M	3.01B	238.81M	-26.69M
Financing Cash Flow	0	-16.09M	-61.98M	-2.03B	-591.22M	-118.44M

Kurogane Kosakusho Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1213.00

Price Trends

50DMA1138.56Positive

100DMA1087.73Positive

200DMA1028.85Positive

Market Momentum

MACD15.43Negative

RSI67.53Neutral

STOCH74.40Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7997, the sentiment is Positive. The current price of 1213.00 is above the 20-day moving average (MA) of 1174.30, above the 50-day MA of 1138.56, and above the 200-day MA of 1028.85, indicating a bullish trend. The MACD of 15.43 indicates Negative momentum. The RSI at 67.53 is Neutral, neither overbought nor oversold. The STOCH value of 74.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7997.

Kurogane Kosakusho Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7997 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8130	82Outperform	JPY 181.32B	11.20	―	4.90%	3.91%	28.69%
JP:6484	73Outperform	JPY 17.02B	8.29	―	3.79%	3.70%	-9.08%
JP:7981	72Outperform	JPY 188.62B	13.30	―	4.20%	1.75%	7.96%
JP:7887	68Neutral	JPY 6.79B	3.71	―	3.07%	40.27%	-18.17%
JP:7997	63Neutral	JPY 2.06B	21.78	―	1.65%	-4.02%	-69.59%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7898	51Neutral	JPY 7.90B	-4.06	―	2.86%	4.00%	-208.45%

* General Sector Average

Performance Comparison

JP:7997 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7997	Kurogane Kosakusho Ltd.	1213.00	109.39	9.91%
JP:6484	KVK Corporation	2110.00	-101.91	-4.61%
JP:7887	Nankai Plywood Co., Ltd.	1305.00	-161.74	-11.03%
JP:7898	Wood One Co., Ltd.	840.00	-27.11	-3.13%
JP:7981	Takara Standard Co., Ltd	3050.00	595.69	24.27%
JP:8130	Sangetsu Corporation	3165.00	252.12	8.66%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026

Kurogane Kosakusho Ltd. AI Stock Analysis